Question
Using the information discussed to prepare a statement of cash flows under the direct method. Forgood Inc. had the following comparative balance sheets for 2019
Using the information discussed to prepare a statement of cash flows under the direct method. Forgood Inc. had the following comparative balance sheets for 2019 and 2020: 12/31/2019 12/31/2020 Cash Rwf 28,900 Rwf 46,000 Accounts Receivable 45,000 41,000 Merchandise 51,000 48,000 Prepaid Rent 3,700 4,100 Plant Assets 835,000 970,000 Accumulated Depreciation (400,000) (356,000) Total Assets Rwf 563,600 Rwf 753,100 Accounts Payable Rwf 37,000 Rwf 32,500 Salaries Payable 7,500 4,500 Taxes Payable 5,000 7,000 Notes Payable (Long-term) — 100,000 Common Stock 350,000 400,000 APIC – Common Stock 45,000 55,000 Retained Earnings 119,100 154,100 Total Equities Rwf 563,600 Rwf 753,100 Its income statement for 2020 reported the following: Sales Rwf 810,000 Cost of Goods Sold (460,000) Gross Profit 350,000 Expenses: Depreciation Expense (30,000) Administrative Expenses (175,500) Tax Expense (69,500) Total Expenses (275,000) Net Income Rwf 75,000 Other data:
1. All sales and purchases were made on account.
2. Dividends of Rwf40,000 were paid during the year.
3. Common stock with a par of Rwf50,000 was issued for Rwf60,000 cash.
4. Plant assets with an original cost of Rwf80,000 and accumulated depreciation of Rwf74,000 were sold for Rwf6,000 in cash.
5. Plant assets were purchased for Rwf100,000 cash.
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